Tata Consultancy Services (TCS), India’s largest IT services firm, is offering severance packages of up to two years’ salary to employees affected by its latest restructuring exercise, according to a Moneycontrol report. The move comes as the company seeks to realign its workforce with emerging technologies, particularly artificial intelligence, and evolving client demands.
The layoffs primarily target long-serving employees whose skills have become redundant or who have not upskilled to meet new requirements. Sources quoted in the report said affected staff will first receive three months’ notice pay, followed by severance ranging from six months to two years’ salary, depending on tenure. Employees with 10–15 years of service may receive packages equivalent to 1.5 years of pay.
TCS clarified that only a “limited number” of staff have been impacted, though reports suggest the scale may be larger. The IT employees’ body NITES alleged that around 2,500 employees in Pune were forced to resign, and has written to the Maharashtra Chief Minister over the matter. Earlier this year, speculation had surfaced that TCS could cut up to 2% of its workforce—more than 12,000 employees.
Apart from severance, TCS is offering additional support, including early retirement options with full retirement benefits such as insurance, as well as outplacement services to help affected staff transition into new roles. For junior associates, the company will cover agency fees for three months or longer. Employees who remain “on the bench” without a project for more than eight months are also being let go, with a simpler package of three months’ notice pay.
“In keeping with the values of our company, those affected by our recent initiative to realign skills have been provided care and support as is due to them in each of the individual circumstances,” TCS said in a statement.
The restructuring highlights a broader trend across the IT industry, where rapid advances in automation and AI are reshaping workforce requirements. For TCS, the severance programme underscores both the scale of its transformation and the company’s attempt to cushion the impact on employees caught in the shift.
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